Suburbs where it is cheaper to buy than rent



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Many Australians understand the fact that they will never be able to buy their own homes. But the new analysis reveals the property window may still be open to prospective buyers.

Even though average prices in Sydney and Melbourne remain high, there are hundreds of suburbs in all Australian capitals where it is cheaper to buy your home than to rent.

Almost all suburbs are on the outside of each city, realestate.com.au data shows, but there are some surprising exceptions.

Kent Town is only 2 km from the Adelaide CBD, located on the desired eastern edge, and has a thriving cafe culture. And based on the median price, it has the biggest positive gap in the country between monthly loan payments and the usual rental costs.

If 80 percent is borrowed to pay for homes at an average price on the outskirts of the city – $ 455,000 – monthly loan payments are $ 1673.

And with a monthly rental price of $ 2448, that's an additional $ 775 a month to join an "Australian dream".

"This is an interesting dynamic in the Adelaide market because we are starting to see price increases and leases," said realestate.com.au chief economist Nerida Conisbee.

"So maybe there won't be a problem with Adelaide's long list to come."

There are almost 140 suburbs in the capital city of Queensland where data shows that purchases will be more beneficial than renting. The best position of them is the new trendy hangout from Newstead.

The suburbs are directly on the river, bordering Teneriffe and Fortitude Valley which are always popular, and only 3 km from the Brisbane CBD.

The average price of Newstead is $ 647,500, where owners can pocket $ 111 more than a month than tenants.

Of the 75 Perth suburbs listed, Glendalough is 5 km from the CBD, 10 minutes drive to the coast and has a positive buy-to-rent ratio of $ 539.

Hobart is next with 35 suburbs but, due to its size, 16 of them are less than 10 km from the CBD, while 25 suburbs in Canberra are calculated to have a positive buy-to-rent ratio.

However, despite recent declines in Sydney and Melbourne prices, the realestate.com.au analysis shows that it is cheaper to rent than to buy in those cities.

Airds, near Campbelltown in southwest Sydney, more than 40 km from the center of Sydney, is the only suburban area with a positive ratio, while Diggers Rest and Longwarry are the only ones in Melbourne but 33km and 78km respectively from the CBD.

"The reason is that both cities have seen the biggest jump in prices over the past five years," Conisbee told news.com.au.

"It might not remain so that there are only three over the next 12 months because prices will return in both cities.

"And we will also see rent starting to rise in 2019 as well, so that it will change things in places like Melbourne and Sydney."

When considering the costs between buying and renting, Conisbee says it is important to consider the pension and main residence of the owner to have tax benefits.

He also said that tenants were more vulnerable to market changes.

"If you bought a house in Newtown (west of Sydney) 10 years ago, you would pay the same mortgage as 10 years ago," Conisbee said.

"Even if you rented in Newtown 10 years ago and you are still renting in Newtown, you will pay far more in rent because the rent has gone up a lot.

"There are financial reasons but there are also market reasons for entering the housing market."

SUBURBS WITH POSITIVE TO-RENT RATIO LESS THAN 10 KM FROM CBD:

Adelaide

Kent Town, Woodville North, Renown Park, Ascot Park, Mitchell Park, Mansfield Park, St Marys, Greenacres and Angle Park.

Hobart

Risdon Vale, Rokeby, Goodwood, Warrane, Lutana, Glenorchy, Montrose, Rosetta, Moonah, Moonah West, Mount Nelson, Mornington, Derwent Park, Geilston Bay, Kingston, Lindisfarne.

Perth

Glendalough, Westminster, Nollamara.

Brisbane

Rocklea, Newstead.

Canberra

Holder

Sydney and Melbourne

There is no

The data is based on 80 percent of the average borrowed house price and the interest rate of 3.69 percent over a period of 30 years. The suburbs definitely have 10 sales over the 12 months to the end of December 18.

Continue the conversation @James_P_Hall | [email protected]

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